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STOCK COMPARISON

Bank of America vs Royal Bank of Canada: Fair Value & Quality

Both stocks run through our valuation models. Here is how Bank of America (BAC) and Royal Bank of Canada (RY) compare, as of Aug 16, 2026.

As of Aug 16, 2026, Fair Value Calculator sees Bank of America as the less overvalued of the two: Bank of America trades at $64.49 versus a fair value of $50.87 (-21%), while Royal Bank of Canada trades at $217 versus $152 (-30%).
Bank of America
BAC · USD · Financials
-21%
upside to fair value
overvalued
Price$64.49
Fair Value$50.87
Quality59/100
Royal Bank of Canada
RY · USD · Financials
-30%
upside to fair value
overvalued
Price$217
Fair Value$152
Quality63/100

Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

Bank of AmericaRoyal Bank of Canada
Valuation
14.8×P/E (TTM)19.5×
3.86×P/S (TTM)4.46×
1.40×P/B2.11×
12.7×EV/EBITDA19.5×
1.06×PEG2.34×
1.9%Dividend yield3.1%
$1.10Dividend per share$6.36
Profitability
29%Net margin34%
36%Operating margin45%
11%Return on equity16%
1%Return on assets1%
Growth
8%Revenue growth (YoY)16%
26.4%Avg. growth/yr (3Y)27.1%
20.9%Avg. growth/yr (5Y)17.6%
Balance & size
1.05×Debt / equity2.54×
$423BMarket cap$293B
mixedGrowth qualityhealthy

Even match: 7 to 7 metric wins.

Dash = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

Bank of Americaof which business quality 51 · market factors 76 Royal Bank of Canadaof which business quality 57 · market factors 87
ProfitabilityMargins and returns on capital today
28
30
Quality GrowthAre margins and returns improving?
62
62
CashflowEarnings quality: real cash, not paper profit
43
100
Fin. StrengthBalance sheet, leverage, solvency risk
23
13
InvestmentDisciplined investing over empire-building
88
74
Low VolatilityCalm price path (market factor)
67
83
MomentumPrice trend over the last 3–12 months (market factor)
76
82
52W MomentumDistance to the 52-week high (market factor)
89
100
Net IssuanceBuybacks instead of dilution
100
83

What the models say

The median fair value (base case) per model family, each in the currency of its trading venue. Green = above the current price, red = below.

Bank of America

Dividend Discount$25.71
Multiples$57.86
Asset-Based$28.63
Economic Profit$42.90

6 of 6 models see the stock below the current price.

Royal Bank of Canada

Dividend Discount$121
Multiples$165
Asset-Based$67.06
Economic Profit$131

6 of 6 models see the stock below the current price.

Scenario ranges

From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.

Bank of America
Bear $38.16Fair Value $50.87Bull $63.59
$64.49 = current price (white tick)
Royal Bank of Canada
Bear $114Fair Value $152Bull $190
$217 = current price (white tick)

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

Bank of America · Financials

Quality score59 · above median
Fair value upside-21% · below median

Royal Bank of Canada · Financials

Quality score63 · Top 25%
Fair value upside-30% · below median

Bottom line

As of Aug 16, 2026, Fair Value Calculator sees Bank of America as the less overvalued of the two: Bank of America trades at $64.49 versus a fair value of $50.87 (-21%), while Royal Bank of Canada trades at $217 versus $152 (-30%).

Royal Bank of Canada has the higher quality score (63/100).

See the full analysis →

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A model-based valuation snapshot from 21 models. Values change with price and fundamentals; the date shown above applies.